My Age of Investment

  Chapter 928 Subprime mortgage crisis broke out

  In early August, Bear Stearns, the fifth-largest investment bank on Wall Street, officially announced that its two funds that invested in subprime mortgage securitization products had closed down, and investors lost more than $1.5 billion in total.

  This news is like the first domino to fall, and it quickly caused a chain reaction in the financial market. Other financial institutions no longer hide it, and they have opened the fig leaf.

  Industrial Bank of Germany announced a profit warning and estimated that the company had a loss of 8.2 billion euros;

  The tenth largest mortgage lending institution in the United States, the U.S. Housing Mortgage Investment Corporation formally applied for bankruptcy protection in the courts, becoming another large mortgage lending institution that filed for bankruptcy in the United States after New Century Financial Corporation;

  The largest bank in France, BNP Paribas announced the freezing of three of its funds, on the grounds that it suffered huge losses from investing in U.S. subprime bonds;

  Macquarie Bank, Australia’s largest investment bank and the world’s seventh largest investment bank, stated that its two high-yield fund investors face a 25% loss;

  Mizuho Group, the parent company of Mizuho Bank, Japan’s second-largest bank, announced that losses related to subprime mortgages in the United States were 600 million yen;

Seven Korean banks headed by Woori Bank invested a total of US$682.5 million in secured debt securities (CDO), resulting in a loss of US$560 million and a loss rate of 82.4%.

  ……

  Subprime mortgage (debt), the infinitely powerful financial bomb finally detonated, and the shock wave from the center of the explosion swept Europe, Asia...and the world.

  Wall Street is full of turmoil, US stocks, Dow, S&P, and Nasdaq have fallen sharply, and the global financial market has been turbulent.

  At the same time, Xia Jingxing in Palo Alto's house still looks like a peaceful time.

   "Jingxing, you hurry to New York to sit down! The financial markets are going crazy, it's terrible! There is a scene of the end of the world everywhere!"

  Xia Jingxing smiled and held the phone, while listening to Liu Hai’s chattering emotion on the other end of the phone, she shook the baby cradle with her feet.

  Now, with such a big movement in the financial market, he can finally be sure that the subprime mortgage crisis has fully erupted.

  And all his layouts have taken effect one by one, and a large amount of investment profits are on the way to the bank account.

  In the past year, he was frugal, and did not keep a little spare money on hand. He put all his brains into the financial market. He lived very tightly, and he was not forced by the richest man at all.

   It is Xia Duoyu, who has become Xia Luo abruptly. Isn't it the subprime mortgage crisis that you are trying to make a lot of money?

  Now, the wish is finally coming true! He can also improve and improve his life.

  The days are getting more and more hopeful!

  After asking briefly about the company, Xia Jingxing began to inquire about Claire Capital and Paulson Fund.

  "The net value of the sub-fund that we handed over to Claire Capital to manage has been greatly increased. A large number of banks and financial institutions holding CDO assets are hedging risks and frantically buying CDS assets in the market, causing the price of CDS assets to rise.

  Peter Thiel followed us and bought a lot of CDS assets.

  He is more inclined to wait and see for a while. When this financial risk caused by subordinated bonds continues to spread and expand, whether it is reselling CDS or waiting for the unlucky gambling opponent to pay, he will be able to obtain greater returns. "

Xia Jingxing smiled. He remembered that Peter Thiel was afraid when he first invested in subprime mortgage derivatives. He called him to consult this and that, and now that he saw Li, he had the courage to do so. Got bigger.

  But Peter Thiel is right, the bullet will fly for a while.

  Take a few Japanese banks as examples, and the announced losses are only a few hundred million yen, which is nothing short of a fool.

As far as he knows, the nine major Japanese banks headed by Mitsubishi UFJ, Mizuho, ​​Sumitomo Mitsui, Sumitomo Trust, Resona, and Chuo Mitsui Group hold more than one trillion yen in U.S. subprime mortgage-backed securities. Where to go.

"Well, Peter Thiel is right. At present, the risk of subprime mortgages has just exploded. Many institutions have not yet correctly realized how dangerous the bombs in their hands are. When they understand clearly, they will give us a bomb demolition device. reasonable price.

  Slowly, the profit has been locked and will not run away with long legs. "

  Liu Hai smiled on the other end of the phone and said, “Well, we will keep an eye on the changes in the market and try our best to get the most profit.”

   "Where is John Paulson?"

Xia Jingxing has not forgotten the big short and the GP. The funds invested by Vision Capital in subprime mortgage derivatives are actually divided into four groups. Two sub-funds and eight sub-funds of Claire Capital, Paulson Fund and Vision Capital Methyl gold.

  Paulson manages 400 million US dollars of funds for Vision Capital.

   "This is the big red man on Wall Street right now! The kind that is red and purple!"

   Liu Hai exaggeratedly said, “I heard that Soros wanted to invite him to dinner and exchange investment tips together.”

  "What's the matter?" Xia Jingxing suddenly became interested.

   Liu Hai introduced: “You should also be aware that Paulson was not well-known before, so the LP source of the fund is very messy, and everyone's money is collected in the fund.

  A few days ago, Paulson Fund disclosed to all LPs the net value of the fund and investment portfolio of the previous quarter as usual.

  This disclosure is a bad thing!

  In the circumstance of howling the market, the Paulson Fund rose against the trend, which can be called a standout!

  So, the pretending LP revealed Paulson’s trading method to his friends..."

  Xia Jingxing was stunned, and then smiled: "Are there too few people who dislike the cake? If you don't hide it, you still reveal it to the outside world?"

   Liu Hai’s tone of helplessness: "What can I do? More people means cluttered mouth."

   "Haha, what did Paulson do? Did you investigate who revealed it?"

  "How to investigate? Two funds with hundreds of LPs can't be investigated at all, and the main energy is to be spent on the financial market. How can it be possible to focus too much attention on these messy things."

   Liu Hai sighed, “Hey, Paulson is very angry. He installed special software on all the company’s e-mails to prevent them from being forwarded.

  But this is the same as making a mistake. Now all Wall Street knows that there is a guy named Paulson who has made a fortune. The more he conceals, the more people pay attention. "

  Xia Jingxing smiled silently, so this is also the reason why Envision Capital does not accept messy LP funds casually.

  In response to this subprime mortgage crisis, Envision Capital, or he put a total of 3.4 billion US dollars, all of which are self-owned funds, and there is no excess LP, so there is no need to worry about leaks due to fund information disclosure and become the target of public criticism.

  "By the way, Paulson is a blessing in disguise. Now a large number of LPs are waving checks to invest in Paulson's funds.

  Now everyone is stupid. The Paulson Fund is like a money printing machine at full capacity, making money continuously.

  Change me to be an LP, and I must invest money in this rising investment star! "

   Liu Hai said with emotion, "I estimate that if Paulson opens up to receive funds this time, the fund's asset management scale will soon exceed 10 billion U.S. dollars.

  In just one year, the size of the fund has expanded tenfold. "

   "Don't be envious!"

  Xia Jingxing heard the envy in Liu Hai’s tone and explained: “Although Paulson became famous overnight, this name is not necessarily a good one!

  He is American and white! As for the two of us, a Chinese and a Chinese, if we go to grab Paulson's limelight, we may be under much greater pressure than him! "

   Liu Hai's tone is heavy: "I understand, but I feel a little bit emotional, tens of billions of funds have passed us by, and every year we charge hundreds of millions of dollars in management fees."

  Xia Jingxing smiled. If Envision Capital disclosed its short-selling performance in subprime mortgages, Paulson Fund would be the younger brother in front of them.

  As long as it is too late, it is impossible for one person to take up all the benefits. Vision Capital hides behind and gains real benefits, so stop coveting other things, and it is easy to be choked to death.

  Xia Jingxing comforted: "Even without the investment performance bonus of subprime shorts, the rise of Envision Capital is unstoppable!"

   "I know that the Lixia No. 2 Fund has now completed its fundraising work and has entered a closed period, and will soon initiate short selling to many banks!"

   When it comes to the word “short”, Liu Hai’s tone is vicious. Shorting subprime loans is easy to be labeled as the chief culprit of the financial crisis, but you don’t have to be afraid of shorting a certain company.

  Now the Wall Street financial institutions that have suffered huge losses are looking for prey, ready to make up for a little loss, and Envision Capital is not too eye-catching.

   "Well, the next loan derivatives really don't have much money. The prices of CDO and CDS assets fluctuate greatly. It is time to find new hunting targets."

  Speaking of this, Xia Jingxing remembered something and asked, “Didn’t Jiang Ping formulate a general plan last year? What did he say?”

Liu Hai laughed, "Yes, Big Brother Jiang Ping is indeed amazing. He conducted a deduction last year. The current financial market is trending at the same level as his deduction. Recently, apart from focusing on the subprime mortgage derivatives market, most of our energy has been devoted To find new investment targets.

  Already a little eyebrows, but you still need to come to New York to preside over the formal opening work. "

  Xia Jingxing glanced at his sleeping son in the cradle, and said, "Okay! I will come here as soon as possible."

  　Thank you for your reward! Ten more chapters will be added. This book has been written for a year, and my body has become a bit tired recently, but I will still do my best to fulfill the contract.

  　　 Saying that today, it seems to be the official two years of writing online articles! Two books have been written, and it feels like it hasn’t been long since.

  　　 Finally, thank you all for your long-term support and encouragement! I also continue to cheer and strive to write better works.

  (End of this chapter)